Julius Bär takes CHF99 million hit on ailing Italian unit
Swiss wealth manager Julius Bär has downgraded its expectations for attracting new assets from rich clients and announced a CHF99 million ($100 million) write-down on its troubled Italian subsidiary Kairos.
This content was published on
1 minute
swissinfo.ch/mga
Julius Bär issued the warning on Tuesday, less than three months into the tenure of new CEO Philipp Rickenbacher. Although assets under management have grown 10% so far this year (CHF422 billion), net new money has weighed in with a disappointing 3% growth.
“It is therefore unlikely that the group will achieve its medium-term target this year,” the bank said it a statementExternal link, referring to targets of 4-6% of new assets deposited by wealthy clients.
The bank also quantified the extent of its problems with subsidiary Kairos. Since completing the buyout of the Italian asset management company last year, Julius Bär has seen top managers leave the unit, taking clients with them.
Assets under management have fallen from CHF11.8 billion at the end of 2018 to a current total of CHF8.4 billion. This has resulted in a non-cash goodwill impairment of €90 million (CHF99 million) for the group as a whole. This means that the bank will not recover the premium it paid to acquire Kairos.
Julius Bär did offer one sweetener to shareholders in the shape of a CHF400 million share buy-back that will run from November 20 to the end of February 2021. The bank also said its cost-cutting programme was running on track to bring savings.
Popular Stories
More
Multinational companies
Azeri fossil-fuel cash cow brings controversy to Switzerland
Swiss price watchdog slams excessive prices for generic medicines
This content was published on
The cheapest generic medicines available in Switzerland are more than twice as expensive as in other countries, according to a study by the Swiss price watchdog.
Nature should not figure in net zero calculations: academic study
This content was published on
The natural removal of CO2 from the atmosphere by forests or oceans should not be included in the net-zero balance of climate protection measures, argue researchers.
This content was published on
None of the 15 major Swiss retail banks is meeting international climate and biodiversity targets, according to a ranking by WWF Switzerland.
This content was published on
Nestlé's new CEO Laurent Freixe, has presented plans for the future of the world's largest food company, after his first few weeks in office.
Swiss foreign minister calls on Moscow to end Ukraine war
This content was published on
It's high time Moscow ended its war against Ukraine, Swiss foreign minister Ignazio Cassis tells the UN Security Council.
This content was published on
The only alternative to the UN Palestinian agency’s work in Gaza is to allow Israel to run services there, Philippe Lazzarini, UNRWA Commissioner-General, told reporters in Geneva on Monday.
Study reveals food culture differences between Switzerland and neighbours
This content was published on
Three-quarters of Swiss people consider eating to be a pleasurable, social activity, a new survey reveals. Healthy eating, however, plays a much less important role, it found.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Swiss wealth manager picks new boss to boost performance
This content was published on
Hodler will continue to assist Rickenbacher into 2020 as the bank seeks to reduce annual costs by CHF100 million ($101 million), including a 2% reduction in headcount by the end of this year. Hodler will then end his 21-year association with Julius Bär to “pursue other projects”, the bank said in a statementExternal link. Rickenbacher,…
Venezuelan ex-minister hoarded money in Switzerland
This content was published on
As US justice authorities investigate corruption among Venezuela’s former leaders, there is evidence that embezzled funds flowed into Swiss banks.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.